Chase Sets New Limits On Zelle To Protect Users

JPMorgan Chase Bank (Chase) has announced new steps to protect customers from scams on Zelle. From March 23, the bank will block or delay Zelle payments if they seem to come from social media contacts. Chase said these changes will prevent fraud and protect customers from scams.

According to Chase, Zelle is used by many users to send money quickly between bank accounts. It is part of mobile apps for major US banks, keeping transfers simple and quick. However, the bank stated that Zelle does not have purchase protection like credit cards. Once a payment is sent, getting it back is nearly impossible if it was a scam.

Chase Cautions Users Against Social Media Scams Involving Zelle Transfers

Chase said scammers are using social media to trick users into sending money through Zelle. Because of this, the bank updated its user policy, warning that Zelle should not be used to pay for products from retailers. It also said payments to users met through social media, online marketplaces, or messaging apps are risky.

The bank said almost 50% of all scam claims reported from June to December last year came from social media. It stated that this sharp rise in fraud is why it is limiting how Zelle can be used. Customers who try to send money to social media contacts will see their payments blocked or delayed, Chase added.

Chase told its users that it will block Zelle payments if they come from social media contacts to protect customers from scams. The bank said Zelle is meant for sending money to trusted connections, like friends and family, not unknown sellers online.

It warned that scams often happen through social media, where payments can be requested for fake offers. These new steps will help prevent fraud and keep accounts secure.

Chase Advises Users To Be Careful When Shopping On Social Media

To avoid fraud on Zelle, Chase advised customers to only send money to users they know. The bank noted that Zelle was not designed for buying products from strangers on social media. It said customers should also research sellers before paying them.

Chase warned that scammers often use very low prices on popular items to trick buyers into sending money. If a deal seems too good to be true, it is important to pause and check if the seller is genuine. The bank advised using safer payment methods, like credit cards, as they offer better security against fraud.

The bank said it may ask for more details before processing certain payments. This could include asking how the customer knows the recipient or verifying the reason for the payment. Chase said this step will help stop fraud and prevent customers from losing money to scams.

According to the bank, scammers often pressure users into fast payments. Chase said customers should be cautious if someone insists on immediate payment due to “limited stock” or a “special deal.” The bank also advised users to check their bank statements regularly. If they see anything suspicious, they should report it right away.